Baxia Markets
By
May 20, 2021

Bearish Signals On AUDUSD

technical analysis top header -01

 

AUDUSD has hovered around 0.7746 for 16 days. During this period, the price had fluctuated within a small range making it hard to see a significant trend. At the beginning of May, the price started to make its first wave of the descending triangle, which was also a big move with a steeper angle. That could be considered the signal for the end of the first period. Till now, the descending triangle has been forming for days, we can see that two waves have already finished, the triangle is on the right way.

 

Graph Template (14)

 

The descending triangle is considered a bearish signal. So, at the end of the triangle, the price would break out the trend line and make a new downward trend. When will the triangle end? The triangle could end up anywhere. What we can do is keep our eyes on the pattern and any new signals. The MACD just made a death cross, meaning that in theory the price could start to go down, but this could be a signal for a small downward wave only, not specifically the break-out signal we are looking for. Keep AUDUSD on your watchlist and see if you can spot that break-out signal in the coming days.

 

 

We love to hear new ideas from traders and want to know what you think! 

 

If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.

Open Live Account  

 

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 

 

Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.

forex, trading conditions, technical analysis, fundamental analysis

Subscribe by Email